CVM Instruction No. 149 of July 3, 1991 (Revoked)

CVM INSTRUCTION NO. 149, OF JULY 3, 1991.

Provides for Sectoral Investment Funds in Stocks.

The PRESIDENT OF THE SECURITIES AND EXCHANGE COMMISSION - CVM makes public that the Collegiate Body, in a session held on this date, and based on the provisions of item I of Article 8 of Law No. 6,385, of December 7, 1976, and RESOLUTION NO. 1,787, of February 1, 1991, of the National Monetary Council,

HAS RESOLVED:

Article 1. The Sectoral Investment Fund in Stocks, constituted in the form of a closed-end condominium, shall be governed by the rules established in this Instruction and in CVM Instruction No. 148, of July 3, 1991.

Sole Paragraph. The Fund shall adopt in its name the expression "Sectoral Investment Fund in Stocks" or "Investment Fund in Stocks of Companies of the Sector(s)...".

Article 2. The Sectoral Fund must maintain, at minimum, 75% (seventy-five percent) of its assets invested in stocks and debentures issued by companies registered with the Securities and Exchange Commission, belonging to the activity sector(s) specified in the Fund's statutes, acquired in stock exchanges, organized over-the-counter markets, or by subscription.

§1. Of the minimum percentage indicated in the "caput" of this article, a maximum of 50% (fifty percent) may consist of debentures issued by companies belonging to the activity sector specified in the Fund's statutes.

§2. The balance may be invested in stocks of open companies not belonging to the sector(s), acquired under the same conditions prescribed in the "caput" of this article, in quotas of Financial Application Funds, or in fixed-income securities of the administrator's free choice.

§3. The total investments in securities issued or co-obligated by a company, its holding company, companies directly or indirectly controlled by it, and its affiliates under common control shall not exceed 50% (fifty percent) of the Fund's total investments.

§4. Investments in securities or financial instruments issued or co-obligated by the administering institution or a company affiliated with it shall not exceed 30% (thirty percent) of the Fund's investments.

Article 3. For the purposes of this Instruction, a company is considered affiliated:

a) in which the administering institution participates, directly or indirectly, in more than 10% (ten percent) of the share capital; b) in which administrators of the administering institution and their respective spouses, partners, or relatives up to the 2nd degree participate, jointly or individually, in more than 10% (ten percent) of the share capital, directly or indirectly; c) in which the administering institution participates, directly or indirectly, in more than 10% (ten percent) of the share capital; d) whose administrators and their respective spouses, partners, or relatives up to the 2nd degree participate, jointly or individually, in more than 10% (ten percent) of the share capital of the administering institution, directly or indirectly; e) in which shareholder(s) with more than 10% (ten percent) of the capital of the administering institution participate, directly or indirectly, in 10% (ten percent) or more of the share capital; f) whose administrators, in whole or in part, are the same as those of the administering institution, except for positions held in collegiate bodies provided for in the statutes or internal regulations of the administering institution, provided that their holders do not exercise executive functions, and after prior consultation with the Securities and Exchange Commission.

Article 4. The Sectoral Fund must highlight in its prospectuses the risk inherent in its investments, considering the degree of concentration of its portfolio.

Sole Paragraph. The prospectuses must also define the maximum percentage invested in options markets, stock and index futures, with short sales being prohibited.

Article 5. This Instruction shall enter into force on the date of its publication.

Signed by
ARY OSVALDO MATTOS FILHO
President